HD Supply gets a boost in Q4

HD Supply Holdings, Inc. had strong results to report for the fourth quarter and full year ended Feb. 1, positioning the company for further growth despite challenging market conditions.

Net sales were up 7% to $2.01 billion for the fourth quarter, with operating income improving a whopping 78% to $130 million. However, HD Supply recorded a loss of $93 million for the quarter, compared to a net loss of $66 million for the fourth quarter of 2013.

For the full fiscal year, sales were up 8% to $8.88 billion, with net income totaling $3 million. This included a $108 million loss on extinguishment and modification of debt and a $7 million restructuring charge. However, HD Supply swung to profit last year after netting a loss of $218 million in fiscal 2013.

"Despite a challenging and uncertain market environment, we remain focused on controllable execution to deliver profitable growth in excess of our markets," said CEO Joe DeAngelo.

Additionally, the company noted that the sale of substantially all of the assets of its Hardware Solutions business to The Home Depot was completed on Jan. 12, 2015, bringing cash proceeds of $198 million to its coffers. It also recorded an $8 million pre-tax gain in fiscal 2014 due to the sale.



HD Supply also reported preliminary net sales of $630 million for February.

"February sales were impacted by persistent winter weather conditions resulting in certain branch and distribution center closures across the country in the second half of the month," said DeAngelo. "We are committed to providing a safe work environment at HD Supply. Given continued adverse weather in March, we have yet to see improvement in our construction related businesses, but we will continue to focus on controllable execution as we enter our spring selling season."